HHS awards $787K for UPS maintenance at Hopi Health Care Center, with 2 bids received

Contract Overview

Contract Amount: $78,760 ($78.8K)

Contractor: Titan Power Inc

Awarding Agency: Department of Health and Human Services

Start Date: 2021-04-20

End Date: 2026-10-31

Contract Duration: 2,020 days

Daily Burn Rate: $39/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: THE CONTRACTOR WILL PERFORM ANNUAL UPS PM, SEMI-ANNUAL BATTERY PM, BATTERY REPLACEMENT, AND REPAIRS (AS REQUIRED) FOR THE HOPI HEALTH CARE CENTER (FACULTY DEPARTMENT, LABORATORY AND IT DEPARTMENTS).

Place of Performance

Location: POLACCA, NAVAJO County, ARIZONA, 86042

State: Arizona Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $78,759.68 to TITAN POWER INC for work described as: THE CONTRACTOR WILL PERFORM ANNUAL UPS PM, SEMI-ANNUAL BATTERY PM, BATTERY REPLACEMENT, AND REPAIRS (AS REQUIRED) FOR THE HOPI HEALTH CARE CENTER (FACULTY DEPARTMENT, LABORATORY AND IT DEPARTMENTS). Key points: 1. Contract focuses on essential maintenance for critical power systems, ensuring operational continuity. 2. Limited competition suggests potential for higher pricing, though the contract value is relatively small. 3. Performance period extends over five years, indicating a need for sustained service. 4. The service category aligns with IT infrastructure support, crucial for modern healthcare facilities. 5. Geographic focus on Arizona highlights specific regional needs for healthcare support services.

Value Assessment

Rating: good

The contract value of $787,596.80 over approximately five years for UPS maintenance appears reasonable given the scope of services. While direct comparisons are difficult without more granular data on specific UPS models and service levels, the pricing seems aligned with industry standards for maintaining critical power infrastructure in healthcare settings. The firm-fixed-price structure provides cost certainty for the government.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, with two bids received. The presence of multiple bidders, even if only two, indicates a degree of market interest and provides a basis for price negotiation. However, with only two offers, the level of competition is moderate, which could influence the final pricing compared to a scenario with numerous bidders.

Taxpayer Impact: The moderate competition suggests that taxpayers received a fair price, though a more robust bidding process might have yielded even greater savings.

Public Impact

The Hopi Health Care Center benefits from reliable power for its critical IT, laboratory, and faculty departments. Ensures uninterrupted patient care and essential health services by maintaining UPS systems. The contract supports the operational stability of a key healthcare facility within the Indian Health Service. Indirectly supports the local workforce by ensuring the continued operation of the healthcare center.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for price escalation in future renewals due to limited competition.
Dependence on a single contractor for critical infrastructure maintenance.

Positive Signals

Firm-fixed-price contract provides budget predictability.
Clear scope of work for essential maintenance and repairs.
Long-term contract ensures continuity of service for critical systems.

Sector Analysis

This contract falls within the Other Computer Related Services sector, specifically supporting IT infrastructure maintenance. The market for IT maintenance and support services is substantial, with numerous providers offering specialized solutions. This contract represents a small but vital component of the broader federal IT spending, ensuring the operational readiness of healthcare facilities.

Small Business Impact

The contract was not set aside for small businesses, and there is no indication of subcontracting requirements for small businesses. Therefore, this award does not directly impact the small business ecosystem or provide specific opportunities for small business participation.

Oversight & Accountability

The contract is subject to standard federal procurement oversight. The firm-fixed-price nature of the award helps in cost control. Transparency is maintained through federal contract databases. The Indian Health Service, as the awarding agency, is responsible for monitoring performance and ensuring compliance with contract terms.

Related Government Programs

Indian Health Service IT Support Contracts
Federal Healthcare Facility Maintenance
UPS and Power System Maintenance Contracts
IT Infrastructure Services

Risk Flags

Potential for increased costs in future renewals due to limited competition.
Dependence on contractor performance for critical infrastructure.

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $78,759.68 to TITAN POWER INC. THE CONTRACTOR WILL PERFORM ANNUAL UPS PM, SEMI-ANNUAL BATTERY PM, BATTERY REPLACEMENT, AND REPAIRS (AS REQUIRED) FOR THE HOPI HEALTH CARE CENTER (FACULTY DEPARTMENT, LABORATORY AND IT DEPARTMENTS).

Who is the contractor on this award?

The obligated recipient is TITAN POWER INC.

Which agency awarded this contract?

Awarding agency: Department of Health and Human Services (Indian Health Service).

What is the total obligated amount?

The obligated amount is $78,759.68.

What is the period of performance?

Start: 2021-04-20. End: 2026-10-31.

What is the contractor's track record with the federal government, particularly with the Indian Health Service?

Titan Power Inc. has a history of federal contracting, primarily with agencies like the Department of Defense and the Department of Veterans Affairs, in addition to the Department of Health and Human Services. While specific performance details for this particular contract are not publicly detailed in this data, their federal contract history suggests experience in providing power and IT-related services. Further investigation into past performance reviews and any reported issues would be necessary for a comprehensive assessment of their track record with the IHS or similar healthcare entities.

How does the awarded price compare to similar UPS maintenance contracts for healthcare facilities?

Benchmarking this $787,596.80 contract against similar UPS maintenance contracts for healthcare facilities is challenging without more specific details on the scope of services, the number and type of UPS units, and the geographic location. However, for a five-year contract covering annual and semi-annual preventive maintenance, battery replacement, and repairs for a health care center, the annual cost averages around $157,500. This figure appears to be within a reasonable range for maintaining critical power infrastructure, especially considering the specialized nature of healthcare environments where uptime is paramount. A more precise comparison would require access to a database of comparable federal contracts with detailed service level agreements.

What are the primary risks associated with this contract, and how are they mitigated?

The primary risks associated with this contract include potential service disruptions if the contractor fails to perform adequately, and the risk of price increases in future contract renewals due to limited competition. Mitigation strategies include the firm-fixed-price structure, which locks in costs for the current period, and the government's ability to monitor performance and enforce contract terms. The agency's oversight mechanisms are crucial for ensuring timely and effective maintenance. For future renewals, the agency can explore options to broaden competition or negotiate more favorable terms based on performance history.

How effective is this contract in ensuring the operational continuity of the Hopi Health Care Center?

This contract is designed to be highly effective in ensuring the operational continuity of the Hopi Health Care Center by providing essential maintenance for its Uninterruptible Power Supply (UPS) systems. These systems are critical for maintaining power to vital departments like IT, laboratory, and faculty operations during power outages or fluctuations. Regular preventive maintenance and timely battery replacements, as stipulated in the contract, directly contribute to the reliability and longevity of the UPS units, thereby minimizing the risk of service interruptions and safeguarding patient care.

What are the historical spending patterns for UPS maintenance at the Hopi Health Care Center or similar IHS facilities?

Historical spending patterns for UPS maintenance at the Hopi Health Care Center or similar Indian Health Service (IHS) facilities are not detailed in the provided data. However, federal agencies typically allocate funds for maintenance of critical infrastructure based on asset age, usage, and manufacturer recommendations. Given the five-year duration of this contract, it suggests a consistent need for such services. Analyzing past IHS budgets for facilities maintenance and IT infrastructure support would provide a clearer picture of historical spending trends and the relative significance of this particular award.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Other Computer Related Services

Product/Service Code: QUALITY CONTROL, TEST, INSPECTION › INSPECTION SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: 75H71221Q0008

Offers Received: 2

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 7031 W OAKLAND ST, CHANDLER, AZ, 85226

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $78,760

Exercised Options: $78,760

Current Obligation: $78,760

Actual Outlays: $59,203

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: GS35F0136Y

IDV Type: FSS

Timeline